#BTC

Breaking! The United States is set to fall into a Great Depression more severe than in 1930.

First, the proportion of the United States' debt to GDP has exceeded the critical point of 120%, far higher than the 16% in 1929. What is even more frightening is that in 1929, the main holder of U.S. debt was the private sector, whereas this time it is the U.S. government.
Second, the pressure resistance capacity of American society has deteriorated, specifically reflected in the decrease in the savings rate of residents and the doubling of debt among the middle class. In 1929, the savings rate of American residents was 8%, while in 2024 it is only 3%. At the same time, the middle class's debt has doubled, which is even more alarming because the middle class is the backbone of social consumption and also serves as an economic buffer. When the middle class lacks the ability to repay, the Great Depression has arrived.
Third, the failure of the US monetary policy appears to be a frequent argument between Trump and Powell over interest rate hikes and cuts, but in reality, both are in a dilemma. Since the main entity of US debt is the government, raising interest rates will consume government finances, while cutting rates will further fuel inflation. It is important to note that US high-interest inflation is already outrageous; if interest rates are raised, the cost of living for the lower-income population will be even higher.
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A few tips: The background of this Great Depression is the deep interconnection of globalization, so the impact of the Great Depression on the world is greater than that of 1929.
Warren Buffett, the stock god, has long pointed the way for us, telling us to hold cash and prepare to buy up high-quality global assets after the Great Depression. The volatility of Bitcoin is closely related to the global liquidity index; during the Great Depression, liquidity becomes very poor, and Bitcoin's price will plummet.